The International Monetary Fund (IMF) and Pakistan have reached astaff-level agreement on the initial review within Pakistan’s Stand-ByArrangement (SBA), according to an IMF statement on Wednesday.
The statement outlines the measures Pakistan has taken or will take tosecure the next portion of the $3 billion loan. Notable commitments includeallowing the exchange rate to be determined by market forces, raisingelectricity and gas prices, linking Benazir Income Support to education andhealth, pursuing state-owned enterprise privatization, and enhancinggovernance and transparency standards.
The agreement, subject to IMF Executive Board approval, would releasearound $700 million, bringing total disbursements to nearly $1.9 billion.The IMF team, led by Nathan Porter, conducted discussions in Islamabad fromNovember 2-15, 2023, noting a nascent economic recovery but emphasizing theneed for continued efforts to address external risks and ensure balancedgrowth.
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The IMF highlighted Pakistan’s commitment to fiscal consolidation, tax baseexpansion, social safety net strengthening, and reforms in the energysector, financial sector, and state-owned enterprises.